Bitcoin (BTC) and crypto investment products saw massive inflows for four straight weeks earlier this summer. This started after Blackrock, the largest wealth manager, bid for the first bitcoin spot exchange traded fund (ETF) or exchange traded fund in the US.
This gave institutional investors renewed confidence to invest in Bitcoin funds. However, this trend seems to persist ended and crypto investment products saw net outflows for the second straight week last week.
Bitcoin and crypto funds shrink again
This is what CoinShares’ James Butterfill writes in one go weekly research report. have last week investors net $20.9 million withdrawn from crypto mutual funds. It was the largest outflow since early June, when US regulators sued Binance and Coinbase in court.
Nevertheless, this year it is only a fraction of the total amount that flowed into such investment products. The past week was also marked by the end of the first half of 2023. On a net basis, the funds are still in good shape, according to the inflow is $472 million this year.
After six months, digital assets recorded inflows of almost 0.5 billion US dollarshttps://t.co/cmQR4JPWan
— James Butterfill (@jbutterfill) July 31, 2023
93% of the capital flight, or $19.4 million, came from Bitcoin funds. Nevertheless, the shorts also shrank BTC fund, the The goal is a falling price of 3.1 million US dollars. According to researcher Butterfill, this suggests that investors have taken profits in recent weeks, but sentiment has remained generally upbeat.
The contraction did not apply to altcoins
In the meantime Altcoins have been much more popular – at least most altcoins haven’t lost money. Ethereum (ETH) funds alone lost a total of $1.9 million. Nevertheless, the week did not go very well for other tokens either. Litecoin (LTC) was very popular a few weeks ago, but last week LTC funds grew by just $0.4 million.
The fastest growing altcoins were Solana (SOL) and Cardano (ADA) at $0.6 million each. Ripple (XRP)-focused ETFs saw $0.5 million in inflows and cross-crypto funds grew $0.9 million overall. Notably, some of these coins have been criticized by the US Securities and Exchange Commission (SEC), which believes they were sold as unregistered securities.